Adjusted net income rose to $3.89 billion, or $1.25 per share, in the second quarter, from $3.08 billion, or $1 per share, a year earlier, the bank said Monday. (The adjusted results exclude changes in the value of the company’s debt.)

“Generating consistent and quality earnings is a key priority and this quarter met that goal,” Citi CEO Michael Corbat said in a statement.

Morgan Stanley Smith Barney Venture

Citi Holdings, which includes Citi’s remaining interest in the Morgan Stanley Smith Barney joint venture, reported negative revenues of $20 million for its brokerage and asset management business versus sales of $87 million a year ago.

Citi also acknowledged that it had completed the sale of the final 35% stake it held in the venture over the past few weeks. With $131 billion in assets, Citi Holdings now includes about 7% of total company assets.

(Morgan Stanley plans to report its wealth management and other earnings on Thursday.)

“Our businesses performed well during the quarter … We also continued to make progress in several critical areas,” Corbat said. “We reduced the earnings drag caused by Citi Holdings, where we saw the largest percentage reduction of assets since 2010.”

Janet Levaux

Janet Levaux, MA/MBA, is Editor in Chief of "Investment Advisor" magazine; she has covered the financial markets since 1991 and advisors since 2005.

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